The paper "Ethics and Human Resource Management" is a perfect example of human resources coursework. Business ethics is a vital part of any manager’ s job or a business owner. The human resources (HR) function in any company deals with many ethical issues or challenges; being the department in a company that deals directly with employees in the company (Miles & Snow, 1984), Human resources includes a lot of ethical issues or pitfalls that can damage company’ s financial sustainability or reputation if not handled rightly. Thus, it is important for any business owner or company to understand human resource ethics, whether in a multinational powerhouse or a local startup company (Miles & Snow, 1984). In the period of liberalization and globalization, workers are becoming a competitive advantage for businesses.
A business may be managed by mediocre but competent employees can be propelled to greater heights. On the other hand, bad workers can cause a successful business to collapse (Danley, 2000). In a competitive business environment, keeping good workers and developing worker’ s loyalty in a company has become a continuing challenge and increasingly important. With a tight labour market, companies need a strategy to retain their crucial skilled employees (Danley, 2000).
Businesses need to retain their employees, businesses must, therefore, allocate sufficient resource to keep workers satisfied and motivated (Danley, 2000). This paper discusses whether ethics in human resources management have a positive effect on workers or employees loyalty. In a recent study by Robert Half International, half of the surveyed company’ s executives said that welfare benefits are the most critical factor in workers retention (Wright and Kehoe. 2008). The purpose of welfare benefit in a company is to develop the whole personality of an employee in order to make him/her a better workforce.
In other words, welfare benefits create loyal, healthy, efficient and satisfied working in a company (Stanton, Young, Bartram, & Leggat, 2010). Welfare benefits will have a positive effect on employee loyalty in a company. This effect can be summarized as follows: welfare benefits provide mental and physical health to employees and thus promote a healthy working environment (Stanton, Young, Bartram, & Leggat, 2010). Facilities like medical benefits, education and recreation, and housing schemes facilities for employees’ families help in raising their standards of living.
This will make an employee to be satisfied, happy (Stanton, Young, Bartram, & Leggat, 2010), and in return, an employee will be able to pay attention in his/her work and thus will increase their productivity in the company. One way in which employers may get a stable labor force is through providing welfare facilities to their employees. This is for the simple reasons that employees take an active interest in their work and jobs with a feeling of participation and involvement.
Employee’ s welfare benefits promote healthy industrial relations at the same time increase productivity among employees thereby maintain industrial peace. Almost all companies provide welfare benefits to their workers to retain them and keep their motivation level high. Promotion as a means of retaining an employee can be tricky to a company unless there is a justification that such promotion will resolve concerns pertaining to job satisfaction. Reasons that contribute to job dissatisfaction vary; some workers are simply dissatisfied due to poor relationships with their superior or overall working conditions; other employees are bored in their current positions.
Promotion is an important aspect of an employee’ s life and career, affecting other facets of the work experience. Promotion creates an important aspect of employee’ s labor mobility, in most cases, it carries substantial salary increment (Beacon, 2001), and will have a significant effect on other job characteristics such as subsequent job attachment and responsibilities (Beacon, 2001). A company can use promotion as a reward for a highly skilled or productive employee, creating an incentive for the employee to put more effort (Beacon, 2001).
The promotion also helps the company to place employees into different responsibilities, where their skills can be used to greater effect. Because promotions carry with them an increase in work amenities such as spending account or bigger office, some employees might enjoy an increase in authority over co-workers which come with a promotion, and this will make an employee be loyal to the company (Beacon, 2001).